NZD/USD breakout targets higher levels as technical momentum builds

NZD/USD surged 0.6% (40 pips) to 0.5920, completing a significant technical breakout above the 0.5880 resistance level that had capped gains for three weeks. The move higher was supported by broad USD weakness and positive risk sentiment in equity markets, with S&P 500 futures gaining 0.5%. Technical indicators show strong bullish momentum, with the RSI rising to 62 and MACD crossing above its signal line. The breakout opens immediate targets at 0.5950 and the psychological 0.6000 level, which hasn't been tested since early November. Volume increased notably during the breakout, confirming buyer conviction. Support levels are now established at 0.5880 (former resistance turned support) and 0.5840 (20-day moving average). Traders should watch for any RBNZ communication and global risk sentiment shifts that could impact the kiwi's trajectory.